NYSE$RPM

RPM International Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

RPM's results for fiscal 2020 fourth quarter and year end were reported.

RPM International Inc. reported a decrease in fourth-quarter sales by 8.9% due to the Covid-19 pandemic, which impacted manufacturing, distribution, and customer activities. Despite the sales decline, adjusted diluted earnings per share were the second best on record, supported by proactive measures like the MAP to Growth program.

  • Fourth-quarter sales declined 8.9%, diluted EPS decreased 17.6%, and adjusted diluted EPS was down 8.9%.
  • The Consumer Group experienced strong top-line growth in the U.S., with sales up 12% due to increased home improvement activities.
  • RPM expects to resume growth seen in recent quarters, with fiscal 2021 first-quarter outlook anticipating net sales growth in low single digits and adjusted EBIT growth of 20% or more.
  • Record operating cash flow of $550 million generated due to good working capital management and margin improvement initiatives

Headline financials

Total Revenue

$1.46B

Previous: $1.6B-8.9%
EPS (adj)

$1.13

Previous: $1.24-8.9%
Free Cash Flow

$402M

No prior period
Net Income

$109M

Previous: $133M-18.0%
Operating Income

$170M

No prior period
Gross Profit

$554M

Previous: $684M-19.0%
Cash & Equivalents

$233M

Previous: $223M+4.6%
Total Assets

$5.63B

Previous: $5.44B+3.5%

Revenue & EPS history

RPM · Revenue · Quarterly

$1.46B

Q4 2020-8.9%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

RPM · $1.18B total across 3 segments · Q2 2019

  • Construction Products
    $467M
  • Consumer
    $425M
  • Performance Coatings
    $292M

Forward guidance

RPM anticipates resuming growth typical of recent quarters, with fiscal 2021 first-quarter outlook projecting net sales growth in the low single digits and adjusted EBIT growth of 20% or more.

Tailwinds

  • Net sales growth in low single digits.
  • Adjusted EBIT growth of 20% or more.
  • Business has been trending better in the first quarter as many markets have re-opened.
  • Consumer Group has continued its sales momentum into fiscal 2021.
  • Remain laser-focused on advancing our MAP to Growth program and managing our businesses to drive efficiency.

Headwinds

  • Construction Products Group could experience sales declines for the first three quarters.
  • Performance Coatings Group could experience sales declines for the first three quarters.
  • Specialty Products Group is expected to face negative sales comparisons during the first two quarters.
  • Sales projections are based on the assumption that we do not experience a second wave of lockdowns related to Covid-19.
  • Continued economic uncertainty related to the length and severity of the Covid-19 health crisis.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.7%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+12.5%

Q4 2023

Best reaction

-11.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-0.7%+13.2%+4.2%
Q2 2026+1.7%+6.5%+11.6%
Q1 2026-0.8%-3.1%-7.3%
Q4 2025-2.4%-1.2%+10.1%
Q3 2025-9.1%-2.2%+3.9%
Q2 2025+1.8%+0.0%+2.6%
Q1 2025+6.0%+7.6%+5.3%
Q4 2024+6.0%+7.9%+4.9%
Q3 2024-4.7%-4.6%-7.8%
Q2 2024-2.2%-1.3%-0.6%
Q1 2024+6.3%+5.4%+3.8%
Q4 2023+12.5%+10.4%+6.6%
Q3 2023-2.6%-2.6%-3.7%
Q2 2023-11.7%-11.4%-6.8%
Q1 2023+5.6%+1.3%+3.3%
Q4 2022+0.4%+5.0%+7.6%
Q3 2022+4.0%+3.8%+1.5%
Q2 2022-2.8%-5.3%-11.0%
Q1 2022+0.4%+0.4%+12.9%
Q4 2021-3.7%-1.8%-5.4%
Q3 2021-2.7%-2.4%+3.3%
Q2 2021-1.2%-1.0%-2.9%
Q1 2021+2.8%+4.5%+9.7%
Q4 2020+2.1%+2.4%+7.8%
Q3 2020+5.4%+3.7%+10.2%
Q2 2020-1.8%-1.0%+0.4%
Q1 2020+0.3%+1.3%+8.8%
Q4 2019+5.6%+7.9%+9.5%
Q3 2019+1.0%+1.0%+3.0%
Q2 2019-3.8%+0.7%+4.4%
Q1 2019-6.3%-5.3%-2.3%
Q4 2018+1.4%+2.4%+5.1%
Q3 2018-1.2%+2.2%+2.3%
Q2 2018+1.9%+0.1%-4.6%
Q1 2018-2.4%-3.0%-0.0%
Q4 2017-3.9%-4.6%-11.0%
Q3 2017-2.6%-3.4%-2.0%
Q2 2017-3.5%-4.9%-5.6%
Q1 2017-4.8%-6.9%-10.6%
Q4 2016+6.2%+4.5%+6.5%
Q3 2016+1.3%
Q2 2016-3.0%
Q1 2016+0.8%
Q4 2015+0.6%
Q3 2015-1.9%
Q2 2015-4.5%
Q1 2015-3.6%
Q4 2014+2.5%
Q3 2014+2.1%
Q2 2014+2.0%
Q1 2014+3.8%
Q4 2013+3.7%
Q3 2013-2.2%
Q2 2013+1.1%
Q1 2013+2.3%
Q4 2012-2.4%
Q3 2012-0.9%
Q2 2012-6.4%
Q1 2012+1.6%
Q4 2009-2.8%
Q4 2011-2.8%
Q3 2010-1.2%
Q3 2011-1.2%
Q2 2010+2.1%
Q2 2011+2.1%
Q1 2011+1.4%
Q4 2010+1.4%
Q1 2010+1.4%

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